Finance

Zuckerberg is out of the top 10 richest: what happened?

One of the most visionary entrepreneurs of the last year has been beaten hard by the circumstances. Find out what is happening.

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Mark Zuckerberg, the founder of Meta, is now ranked 20th in terms of wealth. The most recent statistics indicate that as of the third quarter of 2022, Zuckerberg has lost about 50% of his wealth. For Meta’s head, the year is proving to be difficult.

With his wealth having significantly decreased, Zuckerberg is now listed as the 20th richest person in the world. Zuckerberg’s current net worth is notable for being the lowest since 2014.

More specifically, over the past two years, Zuckerberg’s net worth has dropped dramatically from USD 106 billion to USD 55.9 billion.

This indicates that, to date, the Meta leader has lost a staggering $71 billion, or over half of his personal worth.

Well, other billionaires also lost a significant portion of their fortune, not just Mark Zuckerberg.

Elon Musk, the richest man in the world, saw a $6 billion decline in his net worth. Bill and Melinda Gates each suffered losses of $27 and $26 billion.

Even Jeff Bezos, CEO of Amazon, was hit with a staggering $46 billion loss.

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What was the reason for such a downfall?

Given how the economic recession has affected tech and growth stocks globally over the past year, the decline in Mark Zuckerberg’s wealth is not shocking.

Many IT titans are vulnerable to stock market headwinds since a sizable portion of their fortune is related to the concentrated stakes in the original businesses.

Given that Microsoft is a tech giant in and of itself, this is likely the cause of the significant decline in Bill and Melinda’s net wealth.

The world situation and the change of branding weren’t healthy either.

The Russia-Ukraine war, rising inflation, and higher interest rates have contributed to global economic uncertainty, boosting market volatility. Financial markets entered a bear market earlier this year following a 13-year bull run.

Since Facebook changed its name to Meta almost a year ago, its share price has fallen by nearly 60%, dragged down by a 36% decline in the company’s second-quarter net profit and its first revenue decline.

This happened due to a decline in advertising and growing competition from other social media platforms like TikTok and YouTube.

Mr. Zuckerberg owns roughly 12.8% of Meta.

The icing on the cake, the Metaverse isn’t paying itself.

The much-anticipated Metaverse hasn’t yet begun to take shape as Zuckerberg had hoped, leading investors to question his bold expectations.

The Meta stock is suffering due to an unfavorable macro environment and brief organizational headwinds, which has caused a sharp decline in Zuckerburg’s fortune.

For the first time since 2015, Mr. Zuckerberg was removed from the top 10 richest person’s list and the exclusive $100 billion club in February, according to Reuters.

He lost $29 billion of his net worth at the time as a result of Meta’s stock experiencing its largest one-day decline on February 4, when it fell by 26% and more than $200 billion from the company’s market capitalization was erased.

According to Reuters, Mr. Zuckerberg’s one-day wealth loss in February was among the largest in history and followed Tesla CEO Elon Musk’s $35 billion single-day paper loss in November 2020.

However, as investors go for safety in lower-risk value sectors like consumer goods, energy, financials, and utilities in 2022.

 Mr. Zuckerberg is hardly the first tech billionaire to see his personal fortune decline due to dropping technology equities.

Will he get back from this hit that he suffered? Only time, perseverance, and a little luck can say.

One thing is for certain, this will be interesting to watch

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